Tax codes at retirement
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etienneg
Posts: 468 Forumite
in Cutting tax
Can anybody explain in principle how tax codes are meant to change at retirement? When employment has ended, surely there's no point in a tax code calculated to include tax-free allowances continuing to be applied to former employment. Should HMRC automatically move this to income from a (DB) pension, or is it necessary to ask for this to happen? If the latter, can it be done online (through a personal tax account)?
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Other than State Pension which is always paid by DWP without any tax deduction there is really no difference between employment and pension income.
If your employment had ended and being replaced by a pension then your tax code could end up going against the pension.
Did you give your P45 to the pension company?
Was there a period when you got salary and pension?
Hard to say more without any specifics and not sure you can actually change anything through your personal tax account.0
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